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What is withholding sales tax in digital invoicing?
Withholding sales tax is the portion of sales tax that certain buyers are required to withhold and deposit with FBR directly, rather than paying it in full to the seller. On a digital invoice it is shown and reported so both parties account for it correctly.
Key points
- It applies where the buyer is a designated withholding agent.
- The buyer withholds a defined share of the sales tax on the supply.
- The invoice reflects the withheld amount so the figures reconcile.
- It is reported as part of the invoice data sent to FBR.
Tax & Compliance
In short
Iris Connect handles withholding scenarios in the invoice mapping, so the reported figures are consistent for you and your buyer.
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